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  • FIRST POST
    • ClaireB14
    • By ClaireB14 30th Apr 18, 4:26 PM
    • 2Posts
    • 0Thanks
    ClaireB14
    0% on purchases - is it just in the UK
    • #1
    • 30th Apr 18, 4:26 PM
    0% on purchases - is it just in the UK 30th Apr 18 at 4:26 PM
    I have applied for a M&S Bank Credit Card with a 0% purchases but when I have received the paper work it says it charges 3% for overseas purchase, is this normal? Thanks
Page 1
    • zx81
    • By zx81 30th Apr 18, 4:31 PM
    • 24,365 Posts
    • 27,161 Thanks
    zx81
    • #2
    • 30th Apr 18, 4:31 PM
    • #2
    • 30th Apr 18, 4:31 PM
    Yes, foreign exchange normally attracts a fee.
    • ClaireB14
    • By ClaireB14 30th Apr 18, 4:36 PM
    • 2 Posts
    • 0 Thanks
    ClaireB14
    • #3
    • 30th Apr 18, 4:36 PM
    • #3
    • 30th Apr 18, 4:36 PM
    Do you know of any credit cards that don't charge for foreign purchases?
    • dresdendave
    • By dresdendave 30th Apr 18, 4:37 PM
    • 835 Posts
    • 1,049 Thanks
    dresdendave
    • #4
    • 30th Apr 18, 4:37 PM
    • #4
    • 30th Apr 18, 4:37 PM
    There are specialist cards for travel, Halifax Clarity for example, which do not charge a fee for non sterling transactions. However these are not likely to have a 0% purchases deal.
    • zerog
    • By zerog 30th Apr 18, 10:31 PM
    • 2,443 Posts
    • 861 Thanks
    zerog
    • #5
    • 30th Apr 18, 10:31 PM
    • #5
    • 30th Apr 18, 10:31 PM
    I have applied for a M&S Bank Credit Card with a 0% purchases but when I have received the paper work it says it charges 3% for overseas purchase, is this normal? Thanks
    Originally posted by ClaireB14
    The other posts have missed the point.

    These refer to two different things.


    The 0% on purchases is the interest rate, which is an ongoing rate that is added to your balance every month (unless you are interest-free because you always pay in full). Normally credit cards will have an interest rate of something like 18.9% APR, which is about 1.5% per month.

    So every month, if you don't pay in full, your balance will accrue interest of 1.5%. If you spend 100, 1.50 of interest might be added to your balance if you don't pay it off. The 0% rate here means that no interest will accrue even when you don't pay in full.


    The 3% is a one-time fixed charge which is added to the amount of any overseas purchases.

    So if you buy something overseas for 100 equivalent, 103 will be added to your card balance straight away.


    What I don't know is whether the 3 foreign fee is charged separately, and if it is, whether it counts as a purchase so is eligible for the 0% interest rate.
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